Correlation Between Voya Global and Voya Us
Can any of the company-specific risk be diversified away by investing in both Voya Global and Voya Us at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Voya Global and Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Global Multi Asset and Voya Bond Index, you can compare the effects of market volatilities on Voya Global and Voya Us and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Voya Global with a short position of Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Global and Voya Us.
Diversification Opportunities for Voya Global and Voya Us
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and VOYA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Voya Global Multi Asset and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Voya Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Voya Global Multi Asset are associated (or correlated) with Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Voya Global i.e., Voya Global and Voya Us go up and down completely randomly.
Pair Corralation between Voya Global and Voya Us
Assuming the 90 days horizon Voya Global Multi Asset is expected to generate 1.39 times more return on investment than Voya Us. However, Voya Global is 1.39 times more volatile than Voya Bond Index. It trades about 0.05 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.03 per unit of risk. If you would invest 1,034 in Voya Global Multi Asset on August 30, 2024 and sell it today you would earn a total of 148.00 from holding Voya Global Multi Asset or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Voya Global Multi Asset vs. Voya Bond Index
Performance |
| Timeline |
| Voya Global Multi |
| Voya Bond Index |
Voya Global and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Global and Voya Us
The main advantage of trading using opposite Voya Global and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Global position performs unexpectedly, Voya Us can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Voya Us will offset losses from the drop in Voya Us' long position.| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
| Voya Us vs. Ab Small Cap | Voya Us vs. Lord Abbett Small | Voya Us vs. Victory Rs Partners | Voya Us vs. Hennessy Nerstone Mid |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |